Calgary, Alberta – Reef Resources Ltd. (“Reef“) is pleased to announce that it has entered into a new Asset Purchase Agreement (the “Agreement“) with Levant Exploration and Production Corp. acting in trust for a corporation to be incorporated (“Levant“) pursuant to which Levant would purchase all of Reef’s non-producing oil and gas assets located in Huron County, Ontario (the “Assets“). Levant and Reef had previously entered into an agreement for the sale of the Assets, but that agreement had expired.
Pursuant to the Agreement, Levant will purchase the Assets for $1.00 and will assume all environmental liabilities, abandonment and reclamation obligations, taxes with respect to the Assets post-transaction and all transfer taxes, as defined in the Agreement.
Completion of the transaction is subject to the conditions that the representations of the parties made in the Agreement being true and correct at closing, satisfactory due diligence on the part of Levant as to the Assets and the other assets of Reef, confirmation by Levant of the validity of surface leases to the subject lands, and confirmation that the Government of Ontario has waived the fines outstanding against Reef, failing which Levant will assume up to $85,000 of such fines. Additionally, as the Assets comprise all or substantially all of the assets of Reef, the sale of the Assets requires approval by not less than 66⅔% of the votes cast by shareholders at a meeting of shareholders of Reef.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Arnold W Hansen
President, Chief Executive Officer and Director